Online casino and sports betting company Rush Street Interactive (NYSE: RSI) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 19.7% year on year to $277.9 million. The company’s full-year revenue guidance of $1.11 billion at the midpoint came in 1.3% above analysts’ estimates. Its non-GAAP profit of $0.09 per share was 24.5% above analysts’ consensus estimates.
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Rush Street Interactive (RSI) Q3 CY2025 Highlights:
- Revenue: $277.9 million vs analyst estimates of $266.4 million (19.7% year-on-year growth, 4.3% beat)
- Adjusted EPS: $0.09 vs analyst estimates of $0.07 (24.5% beat)
- Adjusted EBITDA: $36.04 million vs analyst estimates of $31.74 million (13% margin, 13.5% beat)
- The company lifted its revenue guidance for the full year to $1.11 billion at the midpoint from $1.08 billion, a 3.3% increase
- EBITDA guidance for the full year is $150 million at the midpoint, above analyst estimates of $145.6 million
- Operating Margin: 7%, up from 2.8% in the same quarter last year
- Market Capitalization: $1.78 billion
Richard Schwartz, Chief Executive Officer of RSI, said, "We’re pleased to report another strong quarter that underscores the resilience of our business model and player-first approach. Our third quarter results demonstrate continued momentum and acceleration of growth across key markets, led by our continued outperformance in the online casino space. Another quarter of record revenue, up 20% year-over-year, marks our tenth consecutive quarter of sequential revenue growth over the prior quarter. This growth was driven by record player acquisition and strong player engagement across our higher-value markets.
Company Overview
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Rush Street Interactive’s 38.8% annualized revenue growth over the last five years was incredible. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Rush Street Interactive’s annualized revenue growth of 26.7% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, Rush Street Interactive reported year-on-year revenue growth of 19.7%, and its $277.9 million of revenue exceeded Wall Street’s estimates by 4.3%.
Looking ahead, sell-side analysts expect revenue to grow 13.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and implies the market is baking in some success for its newer products and services.
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Operating Margin
Rush Street Interactive’s operating margin has been trending up over the last 12 months and averaged 4.1% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for a consumer discretionary business.
In Q3, Rush Street Interactive generated an operating margin profit margin of 7%, up 4.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Rush Street Interactive’s full-year EPS flipped from negative to positive over the last four years. This is encouraging and shows it’s at a critical moment in its life.
In Q3, Rush Street Interactive reported adjusted EPS of $0.09, up from $0.05 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Rush Street Interactive’s full-year EPS of $0.36 to grow 29.2%.
Key Takeaways from Rush Street Interactive’s Q3 Results
It was good to see Rush Street Interactive beat analysts’ revenue and EPS expectations this quarter. We were also glad its full-year revenue guidance was raised. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $18.18 immediately after reporting.
Is Rush Street Interactive an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
